Once your Flexible Savings product is used as loan collateral, whether you need to repay before redeeming depends on how you plan to redeem. If you try to redeem directly from the Earn page while the assets are pledged, the operation will fail. If you use the Loan page to repay with the collateral, the system will automatically handle the redemption and return the remaining assets.
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Below are 3 steps that distinguish the two redemption methods and guide you through the correct process.
Step 1: First confirm whether your Flexible Savings are indeed used as collateral
Not all Flexible Savings are automatically used as collateral. Only when you proactively initiate a loan in the loan product and select your Flexible Savings assets as collateral will those assets be locked.
What to do: Check your loan position and collateral status in the Binance App.
How to do it:
Go to [Assets] - [Wallet Overview], find the [Borrow Wallet] or [Loan] tab, and check for any active loan orders.
If there are outstanding loan orders and the collateral type shows "Simple Earn (Flexible)", it means your Flexible Savings are indeed used as collateral.
On the Flexible Savings holdings page, if the asset shows as "Pledged" or has a locked icon, it is also being used as collateral.
When it's considered complete: You have confirmed whether there are any outstanding loan debts and whether your Flexible Savings are locked as collateral.
Common failure reason: You try to redeem directly on the Earn page, find the asset cannot be redeemed or see an "asset occupied" prompt, and only then realize it's pledged. Always check the loan position before attempting redemption.
Step 2: If you only want to redeem the Earned assets — you must use the "Repay with Collateral" function in the Loan page
Once Flexible Savings are used as collateral, they move from your "Available Balance" to "collateral for the loan position". The direct redemption route is blocked; you must use the loan function to release the collateral.
What to do: Use the "Repay with Collateral" function in the Binance Loan page to redeem the Earned assets.
How to do it:
Go to [Loan] - [Ongoing Orders] and find your loan position.
Click the [Repay] button and choose the "Repay with Collateral" (repaymentType = 2) method.
The system will use your collateral assets (i.e., the Flexible Savings assets) to repay all or part of the loan debt.
Key parameter settings:
collateralReturn = TRUE(default): Excess collateral will be returned to your Spot Wallet.fullRepayment = TRUE: Repay the entire debt at once, releasing and returning all collateral.
After successful repayment, the corresponding Flexible Savings assets will be automatically released and returned to your Spot Wallet or Earn Wallet.
When it's considered complete: The Loan page shows "Repayment successful", and the assets in the original Flexible Savings product are no longer in "Pledged" status.
Prerequisite: You need to ensure that there is sufficient collateral value to cover the repayment amount, and that the current loan-to-value (LTV) ratio does not exceed the maximum allowed.
Step 3: Special case — If the redemption request is delayed
When redeeming Flexible Savings, there may sometimes be a delay due to "exceptionally high product utilization" or "a large number of redemption requests". This is more likely in a lending scenario, because your assets have been lent out to other users.
What to do: If the redemption request is not fulfilled instantly after submission, understand the reason for the delay and the estimated time.
How to do it:
Check whether you have triggered Binance's "Daily Redemption Quota" — each Flexible Savings product has a daily redemption limit that may be adjusted at any time.
If the borrowing demand for that coin is very high, driving the lending utilization rate close to 100%, redemption may be delayed. You may need to wait for borrowers to repay or for additional liquidity to become available before it goes through.
In such cases, you can try reducing the redemption amount per transaction to stay within the daily limit; or wait for a period (e.g., several hours to 1 day) and then re-initiate the redemption.
When it's considered complete: You have confirmed the redemption status — if it is "Processing", wait for the system to complete; if it remains unprocessed for a long time, consider trying in batches or at a different time.
Risk notice: If severe market volatility occurs during the loan period, causing the collateral value to drop and the LTV ratio to breach the liquidation threshold, Binance may forcibly liquidate your position, using your collateral to repay the debt and charging a liquidation fee (approximately 2% of the loan amount). In that case, you cannot actively redeem; the assets will be handled by the system.
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How to confirm the operation was successful?
After completing the redemption, check twice:
Check the Spot Wallet balance: Have the redeemed assets been returned to your Spot Wallet or Earn account? If you redeemed via "Repay with Collateral", confirm that
collateralReturn = TRUEand the remaining collateral has been returned.Check the loan position status: In [Loan] - [Ongoing Orders], confirm that the loan order shows "Repaid" or "Completed".
If the assets have arrived and the debt is cleared, the redemption is complete. If the debt has been cleared but the Earned assets still show as "Pledged", refresh the page or wait a few minutes; the system needs time to synchronize.
